What Is a Bond?

A bond is a fixed income instrument that represents a loan made by an investor to a borrower (typically corporate or governmental). A bond could be thought of as an I.O.U. between the lender and borrower that includes the details of the loan and its paym...

If you've heard it once, you've heard it a thousand times: BUDGET YOUR MONEY! Financial experts and money advisors have been shouting this mantra from the mountaintops for years.

This is just one of those financial lessons that cannot be preached enough. If you and your...

What Is the Internal Revenue Service (IRS)?

The Internal Revenue Service (IRS) is a U.S. government agency responsible for the collection of taxes and enforcement of tax laws. Established in 1862 by President Abraham Lincoln, the agency operates under the authority of t...

What is a Financial Plan

A financial plan is a comprehensive evaluation of an investor's current and future financial state by using currently known variables to predict future cash flows, asset values and withdrawal plans. Most individuals work in conjunction with a fi...

Free cash flow represents the cash a company generates after cash outflows to support operations and maintain its capital assets. Unlike earnings or net income, free cash flow is a measure of profitability that excludes the non-cash expenses of the income statement and...

What is a Profit Margin

Businesses and individuals across the globe perform for-profit economic activities with an aim to generate profits. However, absolute numbers - like $X million worth of gross sales, $Y thousand business expenses or $Z earnings - fail to provide a...

What Is an Annual Percentage Rate (APR)?

An annual percentage rate (APR) is the annual rate charged for borrowing or earned through an investment. APR is expressed as a percentage that represents the actual yearly cost of funds over the term of a loan. This includes any...

Recession

REVIEWED BY WILL KENTON

Updated Mar 6, 2019

What is a Recession

A recession is a significant decline in economic activity that goes on for more than a few months. It